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HomeMy WebLinkAbout07 - Newport Bay Trash Wheel — Approval of PSACITY OF NEWPORT BEACH City Council Staff Report TO: FROM: PREPARED BY: PHONE: TITLE: ABSTRACT: March 24, 2020 Agenda Item No. 7 HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL David A. Webb, Public Works Director - 949-644-3311, dawebb@newportbeachca.gov John Kappeler, Senior Engineer, jkappeler@newportbeachca.gov 949-644-3218 Newport Bay Trash Wheel — Approval of Professional Services Agreement with Burns & McDonnell Engineering Company, Inc. The Newport Bay Trash Wheel project will provide a trash wheel collecting vessel that can capture garbage flowing down San Diego Creek from inland Orange County into Newport Bay. Staff requests approval of a Professional Services Agreement with Burns & McDonnell Engineering Company, Inc. to prepare construction documents and obtain regulatory permits and approvals for the project. RECOMMENDATION: a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; b) Approve a Professional Services Agreement with Burns & McDonnell Engineering Company, Inc. at a not -to -exceed amount of $464,925, and authorize the Mayor and City Clerk to execute the agreement; and c) Approve Budget Amendment No. 20-041 appropriating $224,925 in increased expenditures from the Upper Bay Reserve unappropriated fund balance to the Public Works, Tidelands Maintenance account (10001-980000-17X12) for the Newport Bay Water Wheel project 17X12. FUNDING REQUIREMENTS: The current Capital Improvement Program budget includes $300,000 for the design of the Newport Bay Water Wheel project. The source of these funds is a grant from the Ocean Protection Council (OPC). Through the terms of the grant agreement, $280,000 is allocated for design and permitting and $20,000 for geotechnical work. 7-1 Newport Bay Trash Wheel — Approval of Professional Services Agreement with Burns & McDonnell Engineering Company, Inc. March 24, 2020 Page 2 If the approved, the budget amendment appropriates an additional $224,925 in increased expenditures from the Upper Bay Reserve unappropriated fund balance. A portion of the requested funds, $184,925, will be combined with the existing $280,000 budgeted for design and permitting to fund the total not -to -exceed amount of $464,925. The remaining portion requested, $40,000, will be combined with the $20,000 budgeted for geotechnical services. Table 1: Fundinq for Proiect Desiqn and Geotechnical Services Funding Source Design Services Burns & McDonnell Geotechnical Services On-call Total OPC Grant Funds $280,000 $20,000 $300,000 Upper Bay Reserve Funds $184,925 $40,000 $224,925 Total $464,925 $60,000 $524,925 The Upper Bay Reserve Fund, also referred to as the Upper Newport Bay Restoration Fund, is a type of State Tideland funds. As outlined in the Senate Bill establishing the funds, the use is reserved for use "by the City for Upper Newport Bay environmental restoration and improvement on tide and submerged lands for the preservation, maintenance, and enhancement of the lands in their natural state and the reestablishment of the natural state of the lands so that they may serve as ecological units for scientific study, as open space, and as environments which provide food and habitat for birds and marine life, and which favorably affect the scenery and climate of the area." Staff feels that this project is in keeping with these guidelines. (See Attachment D) DISCUSSION: San Diego Creek is the largest creek entering Newport Bay and contributes approximately 80% of the freshwater flow into the bay. Every year, large volumes of trash and debris enter the bay from the creek. A large portion of this trash/debris is deposited on the vegetated inter -tidal areas around Upper Bay, the beaches at the Newport Dunes, and around the lower harbor. Some of the trash and debris exits the Harbor Jetty into the open ocean with a portion deposited on beaches along the Balboa Peninsula and Big Corona. The amount of trash and vegetation debris entering the bay has not been directly measured. The City's log boom deployed at North Star Beach captures 20-80 tons of trash and debris annually. About 20 percent of the mass is trash with the remainder debris. Volunteers pick up trash in the upper bay and harbor during various events throughout the year including Coastal Cleanup day, Earth Day, Martin Luther King Day, and the Underwater Clean Up. "Help Your Harbor" does monthly cleanups, with "Surfrider" and "Zero Trash Newport" also performing monthly cleanups. Volunteers do not pick up reeds and other organic debris. The total mass of trash (with no reeds) picked up by volunteers may be in the range of 20-30 tons annually. However, the trash and debris that remains is considerable and it can be safely estimated that the amount of trash and debris entering the bay is well over 100 tons annually, perhaps exceeding 300 tons during a very wet year. 7-2 Newport Bay Trash Wheel — Approval of Professional Services Agreement with Burns & McDonnell Engineering Company, Inc. March 24, 2020 Page 3 At the July 2016 meeting of the Water Quality/Tidelands Committee, Pat Fuscoe, Fuscoe Engineering, reviewed options (including booms, skimmers, and "Bandalong" litter trap) for capturing trash in San Diego Creek. He concluded that a trash wheel at the mouth of San Diego Creek, supplemented with installation of several trash booms upstream of the Highway 405, were the best options for reducing trash loading from the creek into the bay. The concept for the Newport Bay Trash Wheel Project is based on a device successfully operating in Baltimore Maryland's Inner Harbor. The Baltimore trash wheel is a moored vessel that uses booms to move trash to the trash wheel where rotating trash rakes convey the trash onto a conveyor belt that moves the trash up and into a dumpster. The trash rakes and the conveyor belts are powered by the creek's current and solar power. Once the dumpster is full, a towboat transports the dumpster barge to an unloading ramp. In 2017, the Water Quality Tidelands Committee, chaired by Council Member Dixon, identified the trash wheel project as a Committee priority. Fuscoe prepared a technical memorandum for the trash wheel project that became the basis for a 2018 grant application to the State of California Ocean Protection Council (OPC). The City was subsequently successful in securing one of the two grants awarded last year at an amount of $1.68 million for the design and construction of the Trash Wheel. The grant application received support from Newport Bay Conservancy, Surfrider Foundation Newport Beach, Help Your Harbor, and Orange County Coastkeeper. The project has also received support from the California Department of Fish and Wildlife and State Coastal Conservancy. The City's proposed project has a special challenge: the loaded dumpster cannot be towed from San Diego Creek to the unloading ramp at the Newport Dunes due to a concrete breakwater obstruction located at the mouth of San Diego Creek. Instead, the dumpster will sit on a short, elevated rail system in the creek, which will be winched landside when full. Landside, a standard front -loading garbage truck will directly dump the contents of the 8 -cubic yard dumpster into the truck body. The project design must incorporate features to safely and securely operate and transport the trash landside without leakage or loss of trash during windy and/or storm conditions. As the project will be highly visible, project aesthetics are critical. In addition to providing detailed construction documents for this unique project, regulatory agencies staff may require detailed supplementary analyses before approving permits or providing other approvals. This project will require a Coastal Development Permit from the California Coastal Commission, and permits from the Army Corps of Engineers, California Department of Fish & Wildlife, and the Regional Water Quality Control Board. Due to the proposed location of the Trash Wheel within San Diego Creek, easements are also required with the landowner, the Irvine Company, and Orange County Flood Control. Design, Construction and Operation/Maintenance Cost Considerations As the proposed Trash Wheel will be the first of its kind built on the west coast, there is some uncertainty on what studies and analyses the regulatory agencies will require as part of the permit applications. 7-3 Newport Bay Trash Wheel — Approval of Professional Services Agreement with Burns & McDonnell Engineering Company, Inc. March 24, 2020 Page 4 As such, the not -to -exceed limit of $464,925 in the proposed agreement with Burns & McDonnell Engineering Company, Inc. includes $60,000 to prepare additional studies if needed. The concept -level estimate for construction cost is $1.6 million, but could range a bit higher due to the leading edge nature of this project. With 10% contingency, the construction budget would be about $1.8 million. However, at the initial concept design level, a higher construction contingency is prudent. If City Council approves the proposed agreement, staff will initially limit the consultant's scope to focus on preparing a detailed, high confidence, cost estimate. This will entail some detailed analysis of some of the project elements so that costs can be accurately ascertained. Staff proposes coming back to City Council to report on the detailed cost estimate and obtain confirmation that Council remains comfortable with continuing to move forward with the detailed design. The OPC grant allocates $1.38 million for construction. To supplement the higher anticipated construction cost, staff will submit a grant application in April 2020 for an additional $500,000 for the project's construction from OCTA's Measure M2 -Tier 1 program. As part of the grant application package, a resolution passed by City Council authorizing submission of the grant application is necessary. City Council consideration to approve the authorizing resolution would be a separate Council action. Staff met with OCTA on March 3, 2020 and verified that the Trash Wheel is eligible for construction grant funding. Based on the meeting, City staff believes the grant application will be favorably received by the OCTA grant reviewers with a very good chance for funding. Grant awards would be announced in fall with formal agreements signed at the end of the year. Staff would report to Council on the Measure M award as soon as it is announced. A 20% City cash match would be required with the Measure M grant award. The match could be funded from the Upper Bay Reserve Fund. There are also other funding opportunities that staff is exploring; however, it is too early to assess if these potential sources are viable. Table 2 summarizes the projected funding sources for project's design/geotechnical work and construction. Table 2: Summary of Fundina for Desian and Construction Funding Source Design Funding Construction Funding Total OPC Grant Funds $300,000 $1,380,000 $1,680,000 Measure M Grant Funds (projected award) $0 $500,000 $500,000 Upper Bay Reserve Funds $224,925 $100,000 $324,925 Total $524,925 $1,980,000 $2,504,925 The expected useful lifetime of the trash wheel is 20 -years. Maintenance costs are estimated at $12,000 for annual operations and maintenance, and $15,000 for dumpster unloading, for a total of $27,000 annually. Costs would be higher for a long rain season. 7-4 Newport Bay Trash Wheel — Approval of Professional Services Agreement with Burns & McDonnell Engineering Company, Inc. March 24, 2020 Page 5 Cost/Benefit Considerations During the first year of operation, the trash wheel may remove 25-50 tons per year. As staff becomes more familiar with the operation, removal rates may double. As a comparison, the Baltimore Trash Wheel removes 400 tons annually in a larger watershed. Assuming a removal rate of 50 tons per year and an overall cost of $3 million for design, construction and operation/maintenance, the removal cost is estimated to be in the range of $3,000 to $5,000 per ton. As a comparison, the cost of trash removed in catch basin screen inserts is estimated to be in the range of $10,000 to $20,000 per ton. For the trash captured at the Santa Ana -Delhi Channel (SAD) Diversion, the cost of trash removed may be in the range of $50,000 to $60,000 per ton. Note that the catch basin screen inserts and SAD Diversion project are full capture systems; the trash wheel only removes floatable trash. The SAD Diversion project also has a water reuse component. Design Consultant Selection In October 2019, staff issued a Request for Proposals (RFP) to solicit proposals for engineering, design and permitting of the project. Two proposals were received, from Burns & McDonnell and Moffatt & Nichol. As shown in Table 3, senior staff reviewed and scored the proposals and selected Burns & McDonnell based in part on demonstrating a clearer understanding of the project's challenges. The recommended consultant successfully provided professional engineering services for the Big Canyon Phase 1 project completed in 2017. Table 3: Pr000sal Scores Proposer Total Score Overall Rank Burns & McDonnell 89.3 1 Moffatt and Nichol 87.0 2 Staff requests City Council approval of the Professional Services Agreement with Burns & McDonnell Engineering Company, Inc. at a not -to -exceed amount of $464,925. ENVIRONMENTAL REVIEW: Staff recommends the City Council find the professional services agreement with Burns & McDonnell is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. City Council, on September 25, 2018, adopted Resolution No. 2018-67 (Attachments D), a resolution of the City Council of the City of Newport Beach adopting Mitigated Negative Declaration No. ND2018-002, (SCH 2018081013), prepared for the Newport Bay Water Wheel (PA2018-153), pursuant to the California Environmental Quality Act, State CEQA Guidelines and City Council Policy K-3. 7-5 Newport Bay Trash Wheel — Approval of Professional Services Agreement with Burns & McDonnell Engineering Company, Inc. March 24, 2020 Page 6 NOTICING: The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item). ATTACHMENTS: Attachment A — Location Map Attachment B — Professional Services Agreement Attachment C — Budget Amendment Attachment D — Tide and Submerged Lands - A3 SB 573 7-6 ATTACHMENT A MOP VIENILGIR -1 tV 4� ••: `a ir• Tx� 7 a i Newport Bay Trash Wheel Project Location Map � 3 �r AL CITY OF NEWPORT BEACH PUBLIC WORKS DEPARTMENT 17X12 02/11/2020 7-7 1"> � 3 �r AL CITY OF NEWPORT BEACH PUBLIC WORKS DEPARTMENT 17X12 02/11/2020 7-7 ATTACHMENT B PROFESSIONAL SERVICES AGREEMENT WITH BURNS & MCDONNELL ENGINEERING COMPANY, INC. FOR ENGINEERING AND CONSTRUCTION MANAGEMENT SERVICES FOR THE NEWPORT BAY TRASH WHEEL PROJECT THIS PROFESSIONAL SERVICES AGREEMENT ("Agreement") is made and entered into as of this 24th day of March, 2020 ("Effective Date"), by and between the CITY OF NEWPORT BEACH, a California municipal corporation and charter city ("City"), and BURNS & MCDONNELL ENGINEERING COMPANY, INC., a Missouri Corporation ("Consultant"), whose address is 140 S. State College Boulevard, Suite 100, Brea, California 92821, and is made with reference to the following: RECITALS A. City is a municipal corporation duly organized and validly existing under the laws of the State of California with the power to carry on its business as it is now being conducted under the statutes of the State of California and the Charter of City. B. City desires to engage Consultant to provide professional engineering, design and construction management services for the City's proposed trash wheel project ("Project"). C. Consultant possesses the skill, experience, ability, background, certification and knowledge to provide the professional services described in this Agreement. D. City has solicited and received a proposal from Consultant, has reviewed the previous experience and evaluated the expertise of Consultant, and desires to retain Consultant to render professional services under the terms and conditions set forth in this Agreement. NOW, THEREFORE, it is mutually agreed by and between the undersigned parties as follows: TERM The term of this Agreement shall commence on the Effective Date, and shall terminate on December 31, 2023, unless terminated earlier as set forth herein. 2. SERVICES TO BE PERFORMED Consultant shall diligently perform all the services described in the Scope of Services attached hereto as Exhibit A and incorporated herein by reference ("Services" or "Work"). City may elect to delete certain Services within the Scope of Services at its sole discretion. ffA 3. TIME OF PERFORMANCE 3.1 Time is of the essence in the performance of Services under this Agreement and Consultant shall perform the Services in accordance with the schedule included in Exhibit A. In the absence of a specific schedule, the Services shall be performed to completion in a diligent and timely manner. The failure by Consultant to strictly adhere to the schedule set forth in Exhibit A, if any, or perform the Services in a diligent and timely manner may result in termination of this Agreement by City. 3.2 Notwithstanding the foregoing, Consultant shall not be responsible for delays due to causes beyond Consultant's reasonable control. However, in the case of any such delay in the Services to be provided for the Project, each party hereby agrees to provide notice within two (2) calendar days of the occurrence causing the delay to the other party so that all delays can be addressed. 3.3 Consultant shall submit all requests for extensions of time for performance in writing to the Project Administrator as defined herein not later than ten (10) calendar days after the start of the condition that purportedly causes a delay. The Project Administrator shall review all such requests and may grant reasonable time extensions for unforeseeable delays that are beyond Consultant's control. 3.4 For all time periods not specifically set forth herein, Consultant shall respond in the most expedient and appropriate manner under the circumstances, by hand -delivery or mail. 4. COMPENSATION TO CONSULTANT 4.1 City shall pay Consultant for the Services on a time and expense not -to - exceed basis in accordance with the provisions of this Section and the Schedule of Billing Rates attached hereto as Exhibit B and incorporated herein by reference. Consultant's compensation for all Work performed in accordance with this Agreement, including all reimbursable items and subconsultant fees, shall not exceed Four Hundred Sixty Four Thousand Nine Hundred Twenty Five Dollars and 00/100 ($464,925.00), without prior written authorization from City. No billing rate changes shall be made during the term of this Agreement without the prior written approval of City. 4.2 Consultant shall submit monthly invoices to City describing the Work performed the preceding month. Consultant's bills shall include the name of the person who performed the Work, a brief description of the Services performed and/or the specific task in the Scope of Services to which it relates, the date the Services were performed, the number of hours spent on all Work billed on an hourly basis, and a description of any reimbursable expenditures. City shall pay Consultant no later than thirty (30) calendar days after approval of the monthly invoice by City staff. 4.3 City shall reimburse Consultant only for those costs or expenses specifically identified in Exhibit B to this Agreement or specifically approved in writing in advance by City. Burns & McDonnell Engineering Company, Inc. Page 2 7-9 4.4 Consultant shall not receive any compensation for Extra Work performed without the prior written authorization of City. As used herein, "Extra Work" means any Work that is determined by City to be necessary for the proper completion of the Project, but which is not included within the Scope of Services and which the parties did not reasonably anticipate would be necessary at the execution of this Agreement. Compensation for any authorized Extra Work shall be paid in accordance with the Schedule of Billing Rates as set forth in Exhibit B. 5. PROJECT MANAGER 5.1 Consultant shall designate a Project Manager, who shall coordinate all phases of the Project. This Project Manager shall be available to City at all reasonable times during the Agreement term. Consultant has designated David Pohl to be its Project Manager. Consultant shall not remove or reassign the Project Manager or any personnel listed in Exhibit A or assign any new or replacement personnel to the Project without the prior written consent of City. City's approval shall not be unreasonably withheld with respect to the removal or assignment of non -key personnel. 5.2 Consultant, at the sole discretion of City, shall remove from the Project any of its personnel assigned to the performance of Services upon written request of City. Consultant warrants that it will continuously furnish the necessary personnel to complete the Project on a timely basis as contemplated by this Agreement. 5.3 If Consultant is performing inspection services for City, the Project Manager and any other assigned staff shall be equipped with a cellular phone to communicate with City staff. The Project Manager's cellular phone number shall be provided to City. 6. ADMINISTRATION This Agreement will be administered by the Public Works Department. City's Public Works Director or designee shall be the Project Administrator and shall have the authority to act for City under this Agreement. The Project Administrator shall represent City in all matters pertaining to the Services to be rendered pursuant to this Agreement. 7. CITY'S RESPONSIBILITIES To assist Consultant in the execution of its responsibilities under this Agreement, City agrees to provide access to and upon request of Consultant, one copy of all existing relevant information on file at City. City will provide all such materials in a timely manner so as not to cause delays in Consultant's Work schedule. 8. STANDARD OF CARE 8.1 All of the Services shall be performed by Consultant or under Consultant's supervision. Consultant represents that it possesses the professional and technical personnel required to perform the Services required by this Agreement, and that it will perform all Services in a manner commensurate with community professional standards and with the ordinary degree of skill and care that would be used by other reasonably Burns & McDonnell Engineering Company, Inc. Page 3 7-10 competent practitioners of the same discipline under similar circumstances. All Services shall be performed by qualified and experienced personnel who are not employed by City. By delivery of completed Work, Consultant certifies that the Work conforms to the requirements of this Agreement, all applicable federal, state and local laws, and legally recognized professional standards. 8.2 Consultant represents and warrants to City that it has, shall obtain, and shall keep in full force and effect during the term hereof, at its sole cost and expense, all licenses, permits, qualifications, insurance and approvals of whatsoever nature that is legally required of Consultant to practice its profession. Consultant shall maintain a City of Newport Beach business license during the term of this Agreement. 8.3 Consultant shall not be responsible for delay, nor shall Consultant be responsible for damages or be in default or deemed to be in default by reason of strikes, lockouts, accidents, acts of God, or the failure of City to furnish timely information or to approve or disapprove Consultant's Work promptly, or delay or faulty performance by City, contractors, or governmental agencies. 9. HOLD HARMLESS 9.1 To the fullest extent permitted by law, Consultant shall indemnify, defend and hold harmless City, its City Council, boards and commissions, officers, agents, volunteers and employees (collectively, the "Indemnified Parties"), from and against any and all claims (including, without limitation, claims for bodily injury, death or damage to property), demands, obligations, damages, actions, causes of action, suits, losses, judgments, fines, penalties, liabilities, costs and expenses (including, without limitation, attorneys' fees, disbursements and court costs) of every kind and nature whatsoever (individually, a Claim; collectively, "Claims"), and which relate (directly or indirectly) to the negligence, recklessness, or willful misconduct of the Consultant or its principals, officers, agents, employees, vendors, suppliers, subconsultants, subcontractors, anyone employed directly or indirectly by any of them or for whose acts they may be liable, or any or all of them. 9.2 Notwithstanding the foregoing, nothing herein shall be construed to require Consultant to indemnify the Indemnified Parties from any Claim arising from the sole negligence, active negligence or willful misconduct of the Indemnified Parties. Nothing in this indemnity shall be construed as authorizing any award of attorneys' fees in any action on or to enforce the terms of this Agreement. This indemnity shall apply to all claims and liability regardless of whether any insurance policies are applicable. The policy limits do not act as a limitation upon the amount of indemnification to be provided by the Consultant. 10. INDEPENDENT CONTRACTOR It is understood that City retains Consultant on an independent contractor basis and Consultant is not an agent or employee of City. The manner and means of conducting the Work are under the control of Consultant, except to the extent they are Burns & McDonnell Engineering Company, Inc. Page 4 7-11 limited by statute, rule or regulation and the expressed terms of this Agreement. No civil service status or other right of employment shall accrue to Consultant or its employees. Nothing in this Agreement shall be deemed to constitute approval for Consultant or any of Consultant's employees or agents, to be the agents or employees of City. Consultant shall have the responsibility for and control over the means of performing the Work, provided that Consultant is in compliance with the terms of this Agreement. Anything in this Agreement that may appear to give City the right to direct Consultant as to the details of the performance of the Work or to exercise a measure of control over Consultant shall mean only that Consultant shall follow the desires of City with respect to the results of the Services. 11. COOPERATION Consultant agrees to work closely and cooperate fully with City's designated Project Administrator and any other agencies that may have jurisdiction or interest in the Work to be performed. City agrees to cooperate with the Consultant on the Project. 12. CITY POLICY Consultant shall discuss and review all matters relating to policy and Project direction with City's Project Administrator in advance of all critical decision points in order to ensure the Project proceeds in a manner consistent with City goals and policies. 13. PROGRESS Consultant is responsible for keeping the Project Administrator informed on a regular basis regarding the status and progress of the Project, activities performed and planned, and any meetings that have been scheduled or are desired. 14. INSURANCE Without limiting Consultant's indemnification of City, and prior to commencement of Work, Consultant shall obtain, provide and maintain at its own expense during the term of this Agreement or for other periods as specified in this Agreement, policies of insurance of the type, amounts, terms and conditions described in the Insurance Requirements attached hereto as Exhibit C, and incorporated herein by reference. 15. PROHIBITION AGAINST ASSIGNMENTS AND TRANSFERS Except as specifically authorized under this Agreement, the Services to be provided under this Agreement shall not be assigned, transferred contracted or subcontracted out without the prior written approval of City. Any of the following shall be construed as an assignment: The sale, assignment, transfer or other disposition of any of the issued and outstanding capital stock of Consultant, or of the interest of any general partner or joint venturer or syndicate member or cotenant if Consultant is a partnership or joint -venture or syndicate or co -tenancy, which shall result in changing the control of Consultant. Control means fifty percent (50%) or more of the voting power or twenty-five percent (25%) or more of the assets of the corporation, partnership or joint -venture. Burns & McDonnell Engineering Company, Inc. Page 5 7-12 16. SUBCONTRACTING The subcontractors and subconsultants authorized by City, if any, to perform Work on this Project are identified in Exhibit A. Consultant shall be fully responsible to City for all acts and omissions of any subcontractors or subconsultants. Nothing in this Agreement shall create any contractual relationship between City and any subcontractors or subconsultants nor shall it create any obligation on the part of City to pay or to see to the payment of any monies due to any such subcontractors or subconsultants other than as otherwise required by law. City is an intended beneficiary of any Work performed by the subcontractors and subconsultants for purposes of establishing a duty of care between the subcontractors, subconsultants, and City. Except as specifically authorized herein, the Services to be provided under this Agreement shall not be otherwise assigned, transferred, contracted or subcontracted out without the prior written approval of City. 17. OWNERSHIP OF DOCUMENTS 17.1 Each and every report, draft, map, record, plan, document and other writing produced, including but not limited to, websites, blogs, social media accounts and applications (hereinafter "Documents"), prepared or caused to be prepared by Consultant, its officers, employees, agents, subcontractors and subconsultants, in the course of implementing this Agreement, shall become the exclusive property of City, and City shall have the sole right to use such materials in its discretion without further compensation to Consultant or any other party. Additionally, all material posted in cyberspace by Consultant, its officers, employees, agents, subcontractors and subconsultants, in the course of implementing this Agreement, shall become the exclusive property of City, and City shall have the sole right to use such materials in its discretion without further compensation to Consultant or any other party. Consultant shall, at Consultant's expense, provide such Documents, including all logins and password information to City upon prior written request. 17.2 Documents, including drawings and specifications, prepared by Consultant pursuant to this Agreement are not intended or represented to be suitable for reuse by City or others on any other project. Any use of completed Documents for other projects and any use of incomplete Documents without specific written authorization from Consultant will be at City's sole risk and without liability to Consultant. Further, any and all liability arising out of changes made to Consultant's deliverables under this Agreement by City or persons other than Consultant is waived against Consultant, and City assumes full responsibility for such changes unless City has given Consultant prior notice and has received from Consultant written consent for such changes. 17.3 CADD data delivered to City shall include the professional stamp of the engineer or architect in charge of or responsible for the Work. City agrees that Consultant shall not be liable for claims, liabilities or losses arising out of, or connected with (a) the modification or misuse by City, or anyone authorized by City, of CADD data; (b) the decline of accuracy or readability of CADD data due to inappropriate storage conditions or duration; or (c) any use by City, or anyone authorized by City, of CADD data for additions to this Project, for the completion of this Project by others, or for any other Burns & McDonnell Engineering Company, Inc. Page 6 7-13 Project, excepting only such use as is authorized, in writing, by Consultant. By acceptance of CADD data, City agrees to indemnify Consultant for damages and liability resulting from the modification or misuse of such CADD data. All original drawings shall be submitted to City in the version of AutoCAD used by the City in .dwg file format, on a CD, and should comply with the City's digital submission requirements for improvement plans available from the City's Public Works Department. The City will provide Consultant with City title sheets as AutoCAD file(s) in .dwg file format. All written documents shall be transmitted to City in formats compatible with Microsoft Office and/or viewable with Adobe Acrobat. 17.4 All improvement and/or construction plans shall be prepared with indelible waterproof ink or electrostatically plotted on standard twenty-four inch (24") by thirty-six inch (36") Mylar with a minimum thickness of three (3) mils. Consultant shall provide to City 'As -Built' drawings and a copy of digital Computer Aided Design and Drafting ("CADD") and Tagged Image File Format (.tiff) files of all final sheets within ninety (90) days after finalization of the Project. For more detailed requirements, a copy of the City of Newport Beach Standard Design Requirements is available from the City's Public Works Department. 18. OPINION OF COST Any opinion of the construction cost prepared by Consultant represents the Consultant's judgment as a design professional and is supplied for the general guidance of City. Since Consultant has no control over the cost of labor and material, or over competitive bidding or market conditions, Consultant does not guarantee the accuracy of such opinions as compared to Consultant or contractor bids or actual cost to City. 19. CONFIDENTIALITY All Documents, including drafts, preliminary drawings or plans, notes and communications that result from the Services in this Agreement, shall be kept confidential unless City expressly authorizes in writing the release of information. 20. INTELLECTUAL PROPERTY INDEMNITY Consultant shall defend and indemnify City, its agents, officers, representatives and employees against any and all liability, including costs, for infringement or alleged infringement of any United States' letters patent, trademark, or copyright, including costs, contained in Consultant's Documents provided under this Agreement. 21. RECORDS Consultant shall keep records and invoices in connection with the Services to be performed under this Agreement. Consultant shall maintain complete and accurate records with respect to the costs incurred under this Agreement and any Services, expenditures and disbursements charged to City, for a minimum period of three (3) years, or for any longer period required by law, from the date of final payment to Consultant under this Agreement. All such records and invoices shall be clearly identifiable. Burns & McDonnell Engineering Company, Inc. Page 7 7-14 Consultant shall allow a representative of City to examine, audit and make transcripts or copies of such records and invoices during regular business hours. Consultant shall allow inspection of all Work, data, Documents, proceedings and activities related to the Agreement for a period of three (3) years from the date of final payment to Consultant under this Agreement. 22. WITHHOLDINGS City may withhold payment to Consultant of any disputed sums until satisfaction of the dispute with respect to such payment. Such withholding shall not be deemed to constitute a failure to pay according to the terms of this Agreement. Consultant shall not discontinue Work as a result of such withholding. Consultant shall have an immediate right to appeal to the City Manager or designee with respect to such disputed sums. Consultant shall be entitled to receive interest on any withheld sums at the rate of return that City earned on its investments during the time period, from the date of withholding of any amounts found to have been improperly withheld. 23. ERRORS AND OMISSIONS In the event of errors or omissions that are due to the negligence or professional inexperience of Consultant which result in expense to City greater than what would have resulted if there were not errors or omissions in the Work accomplished by Consultant, the additional design, construction and/or restoration expense shall be borne by Consultant. Nothing in this Section is intended to limit City's rights under the law or any other sections of this Agreement. 24. CITY'S RIGHT TO EMPLOY OTHER CONSULTANTS City reserves the right to employ other Consultants in connection with the Project. 25. CONFLICTS OF INTEREST 25.1 Consultant or its employees may be subject to the provisions of the California Political Reform Act of 1974 (the "Act") and/or Government Code §§ 1090 et seq., which (1) require such persons to disclose any financial interest that may foreseeably be materially affected by the Work performed under this Agreement, and (2) prohibit such persons from making, or participating in making, decisions that will foreseeably financially affect such interest. 25.2 If subject to the Act and/or Government Code §§ 1090 et seg., Consultant shall conform to all requirements therein. Failure to do so constitutes a material breach and is grounds for immediate termination of this Agreement by City. Consultant shall indemnify and hold harmless City for any and all claims for damages resulting from Consultant's violation of this Section. Burns & McDonnell Engineering Company, Inc. Page 8 7-15 26. NOTICES 26.1 All notices, demands, requests or approvals, including any change in mailing address, to be given under the terms of this Agreement shall be given in writing, and conclusively shall be deemed served when delivered personally, or on the third business day after the deposit thereof in the United States mail, postage prepaid, first- class mail, addressed as hereinafter provided. 26.2 All notices, demands, requests or approvals from Consultant to City shall be addressed to City at: Attn: Public Works Director Public Works Department City of Newport Beach 100 Civic Center Drive PO Box 1768 Newport Beach, CA 92658 26.3 All notices, demands, requests or approvals from City to Consultant shall be addressed to Consultant at: Attn: David Pohl Burns & McDonnell Engineering Company, Inc. 140 S. State College Boulevard, Suite 100 Brea, CA 92821 27. CLAIMS 27.1 Unless a shorter time is specified elsewhere in this Agreement, before making its final request for payment under this Agreement, Consultant shall submit to City, in writing, all claims for compensation under or arising out of this Agreement. Consultant's acceptance of the final payment shall constitute a waiver of all claims for compensation under or arising out of this Agreement except those previously made in writing and identified by Consultant in writing as unsettled at the time of its final request for payment. Consultant and City expressly agree that in addition to any claims filing requirements set forth in the Agreement, Consultant shall be required to file any claim Consultant may have against City in strict conformance with the Government Claims Act (Government Code sections 900 et seq.). 27.2 To the extent that Consultant's claim is a "Claim" as defined in Public Contract Code section 9204 or any successor statute thereto, the Parties agree to follow the dispute resolution process set forth therein. Any part of such "Claim" remaining in dispute after completion of the dispute resolution process provided for in Public Contract Code section 9204 or any successor statute thereto shall be subject to the Government Claims Act requirements requiring Consultant to file a claim in strict conformance with the Government Claims Act. To the extent that Contractor/Consultant's claim is not a "Claim" as defined in Public Contract Code section 9204 or any successor statute thereto, Burns & McDonnell Engineering Company, Inc. Page 9 7-16 Consultant shall be required to file such claim with the City in strict conformance with the Government Claims Act (Government Code sections 900 et seq.). 28. TERMINATION 28.1 In the event that either party fails or refuses to perform any of the provisions of this Agreement at the time and in the manner required, that party shall be deemed in default in the performance of this Agreement. If such default is not cured within a period of two (2) calendar days, or if more than two (2) calendar days are reasonably required to cure the default and the defaulting party fails to give adequate assurance of due performance within two (2) calendar days after receipt of written notice of default, specifying the nature of such default and the steps necessary to cure such default, and thereafter diligently take steps to cure the default, the non -defaulting party may terminate the Agreement forthwith by giving to the defaulting party written notice thereof. 28.2 Notwithstanding the above provisions, City shall have the right, at its sole and absolute discretion and without cause, of terminating this Agreement at any time by giving no less than seven (7) calendar days' prior written notice to Consultant. In the event of termination under this Section, City shall pay Consultant for Services satisfactorily performed and costs incurred up to the effective date of termination for which Consultant has not been previously paid. On the effective date of termination, Consultant shall deliver to City all reports, Documents and other information developed or accumulated in the performance of this Agreement, whether in draft or final form. 29. PREVAILING WAGES 29.1 Pursuant to the applicable provisions of the Labor Code of the State of California, not less than the general prevailing rate of per diem wages including legal holidays and overtime Work for each craft or type of workman needed to execute the Work contemplated under the Agreement shall be paid to all workmen employed on the Work to be done according to the Agreement by the Consultant and any subcontractor or subconsultant. In accordance with the California Labor Code (Sections 1770 et seq.), the Director of Industrial Relations has ascertained the general prevailing rate of per diem wages in the locality in which the Work is to be performed for each craft, classification, or type of workman or mechanic needed to execute the Agreement. A copy of said determination is available by calling the prevailing wage hotline number (415) 703-4774, and requesting one from the Department of Industrial Relations. The Consultant is required to obtain the wage determinations from the Department of Industrial Relations and post at the job site the prevailing rate or per diem wages. It shall be the obligation of the Consultant or any subcontractor or subconsultant under him/her to comply with all State of California labor laws, rules and regulations and the parties agree that the City shall not be liable for any violation thereof. 29.2 Unless otherwise exempt by law, Consultant warrants that no contractor, subcontractor or subconsultant was listed on the bid proposal for the Services that it is not currently registered and qualified to perform public work. Consultant further warrants that it is currently registered and qualified to perform "public work" pursuant to California Burns & McDonnell Engineering Company, Inc. Page 10 7-17 Labor Code section 1725.5 or any successor statute thereto and that no contractor, subcontractor or subconsultant will engage in the performance of the Services unless currently registered and qualified to perform public work. 30. STANDARD PROVISIONS 30.1 Recitals. City and Consultant acknowledge that the above Recitals are true and correct and are hereby incorporated by reference into this Agreement. 30.2 Compliance with all Laws. Consultant shall, at its own cost and expense, comply with all statutes, ordinances, regulations and requirements of all governmental entities, including federal, state, county or municipal, whether now in force or hereinafter enacted. In addition, all Work prepared by Consultant shall conform to applicable City, county, state and federal laws, rules, regulations and permit requirements and be subject to approval of the Project Administrator and City. 30.3 Waiver. A waiver by either party of any breach, of any term, covenant or condition contained herein shall not be deemed to be a waiver of any subsequent breach of the same or any other term, covenant or condition contained herein, whether of the same or a different character. 30.4 Integrated Contract. This Agreement represents the full and complete understanding of every kind or nature whatsoever between the parties hereto, and all preliminary negotiations and agreements of whatsoever kind or nature are merged herein. No verbal agreement or implied covenant shall be held to vary the provisions herein. 30.5 Conflicts or Inconsistencies. In the event there are any conflicts or inconsistencies between this Agreement and the Scope of Services or any other attachments attached hereto, the terms of this Agreement shall govern. 30.6 Interpretation. The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either party by reason of the authorship of the Agreement or any other rule of construction which might otherwise apply. 30.7 Amendments. This Agreement may be modified or amended only by a written document executed by both Consultant and City and approved as to form by the City Attorney. 30.8 Severability. If any term or portion of this Agreement is held to be invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions of this Agreement shall continue in full force and effect. 30.9 Controllinq Law and Venue. The laws of the State of California shall govern this Agreement and all matters relating to it and any action brought relating to this Agreement shall be adjudicated in a court of competent jurisdiction in the County of Orange, State of California. Burns & McDonnell Engineering Company, Inc. Page 11 7-18 30.10 Equal Opportunity Employment. Consultant represents that it is an equal opportunity employer and it shall not discriminate against any subcontractor, subconsultant, employee or applicant for employment because race, religious creed, color, national origin, ancestry, physical handicap, medical condition, marital status, sex, sexual orientation, age or any other impermissible basis under law. 30.11 No Attorneys' Fees. In the event of any dispute or legal action arising under this Agreement, the prevailing party shall not be entitled to attorneys' fees. 30.12 Counterparts. This Agreement may be executed in two (2) or more counterparts, each of which shall be deemed an original and all of which together shall constitute one (1) and the same instrument. [SIGNATURES ON NEXT PAGE] Burns & McDonnell Engineering Company, Inc. Page 12 7-19 IN WITNESS WHEREOF, the parties have caused this Agreement to be executed on the dates written below. APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE Date: 6.9. ►7 • o -Ln By: A A r n C. Harp Ci Attorney ATTEST: Date: Leilani I. Brown City Clerk CITY OF NEWPORT BEACH, a California municipal corporation Date: By: Will O'Neill Mayor CONSULTANT: Burns & McDonnell Engineering Company, Inc., a Missouri Corporation Date: By: Renita M. Mollman Vice President Date: By: Stephen Kane Vice President [END OF SIGNATURES] Attachments: Exhibit A — Scope of Services Exhibit B — Schedule of Billing Rates Exhibit C — Insurance Requirements Burns & McDonnell Engineering Company, Inc. Page 13 7-20 EXHIBIT A SCOPE OF SERVICES ENGINEERING AND CONSTRUCTION MANAGEMENT SERVICES FOR NEWPORT BAY TRASH WHEEL PROJECT The Consultant shall complete the following the tasks: REVIEW TECHNICAL REPORT & SITE VISIT The Consultant shall review the Technical Report (Attachment A to the RFP) and conduct a site visit to assess the site conditions at the location proposed for the Trash Wheel. The Consultant's project manager, civil design engineer, structural engineer, and permit lead shall attend the site visit. 2. MEET WITH CLEARWATER MILLS The Consultant shall coordinate and meet with the Clearwater Mills Trash Wheel designers ("Clearwater Mills") on the same day as the scheduled site visit to review the preliminary design and collaborate on the conceptual design (Task 3) of the pilings, trash conveyance, off -haul, power, monitoring and security systems. The collaboration with Clearwater Mills shall include detailed discussions of operational experience, best practices and lessons learned from the existing installations in Baltimore. It is assumed Clearwater Mills shall attend the site visit and provide the design and operation information at that time. 3. PREPARE CONCEPT PLAN The Consultant shall prepare a concept plan of the trash wheel and railway system based on the concept prepared for the Mitigated Negative Declaration (MND) and Technical Memorandum as described in the RFP and its attachments. The concept shall focus on critical issues that include: site layout, site access, truck movement, rail and winch system, roll -off container movement, tidal impacts to the trash wheel, site grading and retaining walls, site security, meeting power requirements, irrigation water source, control and monitoring instrumentation, and screening/aesthetics. The Consultant shall develop the concept plan to include the design for a pivoting and telescoping gangway, and for a hopper to positively convey trash from the conveyor into the dumpster considering expected windy and raining conditions. Clearwater Mills shall provide the concept plan drawings for the Trash Wheel (floating portion) for inclusion in the concept design plan set which shall include a plan sheet, elevation/sections, and detail sheets equivalent to a 20% design level. Clearwater Mills shall provide input on the rail and winch system, hopper, roll -off container movement, trash wheel, site security, power requirements, control and monitoring instrumentation to the Consultant. During this phase, The Consultant shall consult with the City on related issues such as control of free liquid and waste collection logistics. Burns & McDonnell Engineering Company, Inc. Page A-1 7-21 4. ASSIST STAFF WITH STAKEHOLDER MEETINGS The Consultant shall assist the City staff at meetings with Orange County Flood Control District ("OCFCD") and the Irvine Company to discuss the concept plan. With the help of the Consultant's team member, Clearwater Mills, shall prepare meeting materials (presentation exhibits and PowerPoint Slides) that include the concept plans showing the footprint of the project, pilings within the floodway, proposed waste collection, conveyance and transport. The Consultant shall also provide presentation materials that address likely permit issues and concerns raised during the MND process. The Consultant shall provide the City with the meeting presentation materials prior to this meeting for review and input. The OCFCD (or other agencies) will not require HEC -RAS modeling, or any other detailed channel modeling. 5. ASSIST STAFF PRESENTATIONS The Consultant shall attend up to five (5) meetings. The Consultant's project manager and design engineer shall attend the meetings. Clearwater Mills shall participate in up to two (2) meetings in Newport Beach and the remaining by conference call with the City to provide updates on design progress, issues and coordination with the design team. 6. PERFORM SITE TOPOGRAPHIC SURVEYS The Consultant shall perform site topographic surveys to represent field conditions and provide horizontal and vertical controls for the project. The Consultant shall contact Orange County Watersheds to obtain the latest bathymetric information. A licensed professional land surveyor ("PLS") shall be subcontracted to survey the site, provide topographic contours and survey shots on key features, and to provide boundary survey information, benchmarks and project control points. The PLS shall tie in the provided bathymetry data into a survey base file (AutoCAD 2019) for use in the design. 7. REVIEW GEOTECHNICAL REPORT The geotechnical report will be prepared by others and is not part of this scope of work. The Consultant shall review the geotechnical report provided by the City. The geotechnical consultant will provide a report on the liquefaction loading subject and parameters for the 30% design and the final geotechnical report based on the geotechnical field investigation for the 60% design. 8. PREPARE A DETAILED DRAINAGE ANALYSIS The Consultant shall prepare a drainage analysis for the site with recommendations for preventing pollutants from entering San Diego Creek. The Consultant shall consider the water quality storm and larger design storms when evaluating how fugitive waste or other pollutants may escape the system and wash back into San Diego Creek. From this evaluation, the Consultant shall design controls in accordance with the City's drainage standards to minimize or prevent any such pollution that could result from the project. Burns & McDonnell Engineering Company, Inc. Page A-2 7.22 9. PREPARE DETAILED PILE DESIGN ANALYSES The Consultant shall prepare a pile design analyses for the Trash Wheel assembly and associated rail system. The system shall consider short duration, high intensity storms that coincide with tides at Median Higher High Water ("MHHW") and Median Lower Low Water ("MLLW"). The Consultant shall provide the structural engineering calculations for the Trash Wheel guide piles; trash container piles and frame; anchoring system for trash boom; and retaining walls to support fill and pavement for truck "turn -out." The Consultant shall design the piles in the slope that supports the stairway access system. The steel stringers, steps, landings or mid -platforms and railing shall be provided in design/build format. Clearwater Mills shall coordinate with the Consultant regarding the design requirements for the trash wheel (floating portion) and regarding the pile design for the Trash Wheel assembly. 10. PREPARE CONSTRUCTION DOCUMENTS Based on the approved concept design, the Consultant shall prepare construction documents (drawings, special provisions and engineer's estimate) and periodically submit documents to City staff for review and comments (50%, 75%, 95% and Final). Major project components shall include: • Site grading and creating a new, paved 14 -foot wide access road, including a concrete pad for pickup and drop-off of roll -off trash containers and proposed trail improvements. • Shore -side unloading facilities including railway and winch system, stairwell and gangway. �rash Clearwater Mills shall provide the design performance requirements of a Wheel (floating portion of a Trash Wheel equipment) including the floating platform, water wheel, conveyor belt hopper, and floating booms. Clearwater Mills shall provide recommendations regarding roll -off container with sled, system controls, solar panels and battery banks to the Consultant for the design and construction documents. The interfaces between the Consultant and Clearwater Mills shall be between the fixed container and the trash wheel conveyor system, the piles designed by the Consultant (the piles shall have a field -constructed location tolerance that the Trash Wheel design shall need to allow for), and the landing of the gangway on the floating deck of the Trash Wheel. The Consultant shall work with the City to meet standard City contracting requirements that may include not specifying a specific brand of trash wheel and providing performance requirements that meet the objectives of a trash wheel device without requiring a specific type. • The Consultant shall assume the use of locally available water and the use of a water truck and operator to provide temporary irrigation. This approach would accommodate the small footprint of the area of revegetation (estimated to be less than half an acre) and utilize the newly installed access road and truck turnaround. The project schedule anticipates construction to be completed in November Burns & McDonnell Engineering Company, Inc. Page A-3 7-23 timeframe right before the raining season. This approach shall be presented in the permit documents. Should permit negotiation result in a requirement of a designed temporary irrigation system, upon approval of an amendment to this Agreement, the Consultant shall complete a design of a temporary irrigation system including installation of an irrigation line on site with backflow preventer, master irrigation valve, and flow sensor with telemetry cable. • The Consultant shall prepare construction documents that include a landscape plan using native plants that is prepared by a California registered landscape architect. The native plant palette shall use the biological survey data completed for the MND (Stantec, 2018) and the Consultant's expertise in re- establishing coastal sage environments. If required and approved by an amendment to this Agreement, a Habitat Mitigation and Monitoring Plan ("HMMP"), shall be provided. This plan may be a permit condition that can also be prepared prior to construction and therefore not required for the permit application. No off- site mitigation will be required and the mitigation for the temporary disturbance of the defined habitat types in the MND shall be addressed through re -vegetation with native vegetation of all distributed areas on-site (approximately less than half an acre). • The Consultant shall include design features to secure the site including fencing and security cameras. The scope includes the availability of adequate electrical service on-site for the security system, lighting, and potentially winch system (if not solar powered by Trash Wheel battery bank). In addition, the Consultant shall provide the design for the basic security system that includes two cameras basic remote integration via cellular service provider, fencing, a manually operated gate, and lighting. • The Consultant shall evaluate the removal of existing pile remnants at the project site. • The Consultant shall work with the City to provide the design interpretive signage. 11. IDENTIFY, PREPARE, AND PROCESS PERMITS The Consultant shall provide the technical reports and materials to the City's Community Development Department for preparation and submittal of the permit applications. The City will prepare the permit applications and submit the applications for review by the resource and regulatory agencies. Application filing fees and public noticing fees, such as printing, mailing, and newspaper ad costs, will be paid directly by the City. The Consultant shall provide technical support to the City as needed to respond to comments from agency staff. The Consultant shall provide the technical reports and materials to the City to prepare the applications and process the following permits: �efter US Army Corps of Engineers ("USACE") Section 404 of Clean Water Act, of Permission, and Section 106 (Cultural) • Regional Water Quality Control Board (Santa Ana Region) 401 Certification Burns & McDonnell Engineering Company, Inc. Page A-4 7-24 California Department of Fish and Wildlife (CDFW") The Consultant shall provide the technical reports and materials for the City to prepare the California Coastal Commission ("CCC") Coastal Development Permit ("CDP") package for submittal. The Consultant shall provide technical support to the City who will prepare the public notice, and draft responses to additional information requests from CCC staff, and draft sections of the CCC Staff Report. The proposed project is located within submerged tidelands granted by the California State Lands Commission ("CSLC") to the City of Newport Beach; however, the CSLC does not have leasing authority for surface structures on lands granted to the City so it is assumed that no lease with the CSLC shall be required. Preparation of plans or submittals to comply with "Prior to Issuance Conditions" from the CCC CDP is not included in this scope of work. The extent of documentation or reporting required shall depend on regulatory agency discretion. The City prepared a Mitigated Negative Declaration to comply with the California Environmental Quality Act ("CEQA") so it is assumed that no additional CEQA analysis shall be required. This scope assumes that all previous survey reports shall be provided and that no additional focused surveys shall be necessary. Additionally, implementation of any mitigation requirements are not included in this scope of work or cost estimate. Development of any building permit applications or coordination with local agencies regarding building or other ministerial permits is not included in this scope of work. A Coastal Hazards and Sea Level Rise Analysis shall not be required. Development of special and additional environmental studies, mitigation, construction water quality monitoring, or acoustical noise monitoring plans, if ultimately needed, are not included in this scope of work. 12. PREPARE AND PROCESS TEMPORARY AND PERMANENT EASEMENT DOCUMENTS The Consultant shall prepare and process temporary and permanent easement documents with the Irvine Company, owner of the property containing the creek and creek bank. This task shall be executed together with our subcontracted PLS. 13. PREPARE AND PROCESS ENCROACHMENT AND EASEMENT DOCUMENTS FOR THE COUNTY OF ORANGE The Orange County Flood Control District has an easement from The Irvine Company to convey flood flows in San Diego Creek. The Consultant shall prepare and process encroachment and easement documents with the County of Orange for access along the access road to the construction site, access onto the project site, and access to the Trash Wheel location in the creek. 14. PREPARE OPERATIONS AND MAINTENANCE PLAN The Consultant shall prepare an Operation and Maintenance manual for the City's use in operating the site. Clearwater Mills shall provide operations and maintenance recommendations specific to the Trash Wheel floating portion for incorporation into an overall site Operations and Maintenance Manual. Burns & McDonnell Engineering Company, Inc. Page A-5 7-25 EXHIBIT B SCHEDULE OF BILLING RATES ENGINEERING AND CONSTRUCTION MANAGEMENT SERVICES FOR NEWPORT BAY TRASH WHEEL PROJECT 01 Upgraded Temporary Burns & McDonnell Engineering Company, Inc. Page B-1 7-26 Total B\IrD B\IcD Project Tasks Hours Labor Expenses Total Cost Design .: ,Task 1 .11 1 Review Reports/She Visit 24 $ 5,436 $ 1,840 $ 7,236 Task 2 Coordination Clearwater Mills 14 S 3,048 S - $ 3,048 Task 3 Concept Design 156 S 30,584 S $ 30,584 Task 4 Stakeholder Meetings 40 S 9,768 S $ 9,768 Task 5 Progress Meetings 38 S 8,756 $ 1,800 S 10,556 Task 6 Topo Survey Coordination 4 S 778 S - $ 778 Task 7 Geotechnical Invest/Rpt Coord 4 S 778 S $ 778 Task 8 Drainage Analysis 48 S 8,656 $ $ 8,656 Task 9 Pile Design Coord 8 $ 1,556 S $ 1,556 Task 10 Construction Documents 771 $ 145,295 $ S 145,295 Permits 172 S 30,304 1 ,304 Task 11 USACE 404 and Section 106 54 S 9,468 S $ 9,468 401 Certification 44 $ 7,644 S $ 7,644 Coastal Development Permit 74 $ 13,192 $ - $ 13,192 Task 12 Irvine Company Permanent Easement 1 6 $ 1,458 $ - $ 1,458 Task 13 OC Flood Control District Easement 4 $ 966 $ - $ 966 01 Upgraded Temporary Burns & McDonnell Engineering Company, Inc. Page B-1 7-26 EXHIBIT C INSURANCE REQUIREMENTS — PROFESSIONAL SERVICES 1. Provision of Insurance. Without limiting Consultant's indemnification of City, and prior to commencement of Work, Consultant shall obtain, provide and maintain at its own expense during the term of this Agreement, policies of insurance of the type and amounts described below and in a form satisfactory to City. Consultant agrees to provide insurance in accordance with requirements set forth here. If Consultant uses existing coverage to comply and that coverage does not meet these requirements, Consultant agrees to amend, supplement or endorse the existing coverage. 2. Acceptable Insurers. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance in the State of California, with an assigned policyholders' Rating of A- (or higher) and Financial Size Category Class VII (or larger) in accordance with the latest edition of Best's Key Rating Guide, unless otherwise approved by the City's Risk Manager. 3. Coverage Requirements. A. Workers' Compensation Insurance. Consultant shall maintain Workers' Compensation Insurance, statutory limits, and Employer's Liability Insurance with limits of at least one million dollars ($1,000,000) each accident for bodily injury by accident and each employee for bodily injury by disease in accordance with the laws of the State of California, Section 3700 of the Labor Code. Consultant shall submit to City, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of City, its City Council, boards and commissions, officers, agents, volunteers and employees. B. General Liability Insurance. Consultant shall maintain commercial general liability insurance, and if necessary umbrella liability insurance, with coverage at least as broad as provided by Insurance Services Office form CG 00 01, in an amount not less than one million dollars ($1,000,000) per occurrence, two million dollars ($2,000,000) general aggregate. The policy shall cover liability arising from premises, operations, personal and advertising injury, and liability assumed under an insured contract (including the tort liability of another assumed in a business contract). C. Automobile Liability Insurance. Consultant shall maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of Consultant arising out of or in connection with Work to be performed under this Agreement, including coverage for any owned, hired, non -owned or rented vehicles, in an amount not less than one million dollars ($1,000,000) combined single limit each accident. Burns & McDonnell Engineering Company, Inc. Page C-1 7-27 D. Professional Liability (Errors & Omissions) Insurance. Consultant shall maintain professional liability insurance that covers the Services to be performed in connection with this Agreement, in the minimum amount of one million dollars ($1,000,000) per claim and two million dollars ($2,000,000) in the aggregate. Any policy inception date, continuity date, or retroactive date must be before the Effective Date of this Agreement and Consultant agrees to maintain continuous coverage through a period no less than three years after completion of the Services required by this Agreement. 4. Other Insurance Requirements. The policies are to contain, or be endorsed to contain, the following provisions: A. Waiver of Subrogation. All insurance coverage maintained or procured pursuant to this Agreement shall be endorsed to waive subrogation against City, its City Council, boards and commissions, officers, agents, volunteers and employees or shall specifically allow Consultant or others providing insurance evidence in compliance with these requirements to waive their right of recovery prior to a loss. Consultant hereby waives its own right of recovery against City, and shall require similar written express waivers from each of its subconsultants. B. Additional Insured Status. All liability policies including general liability, excess liability, pollution liability, and automobile liability, if required, but not including professional liability, shall provide or be endorsed to provide that City, its City Council, boards and commissions, officers, agents, volunteers and employees shall be included as insureds under such policies. C. Primary and Non Contributory. All liability coverage shall apply on a primary basis and shall not require contribution from any insurance or self-insurance maintained by City. D. Notice of Cancellation. All policies shall provide City with thirty (30) calendar days' notice of cancellation (except for nonpayment for which ten (10) calendar days' notice is required) or nonrenewal of coverage for each required coverage. 5. Additional_ Agreements Between the Parties. The parties hereby agree to the following: A. Evidence of Insurance. Consultant shall provide certificates of insurance to City as evidence of the insurance coverage required herein, along with a waiver of subrogation endorsement for workers' compensation and other endorsements as specified herein for each coverage. Insurance certificates and endorsement must be approved by City's Risk Manager prior to commencement of performance. Current certification of insurance shall be kept on file with City at all times during the term of this Agreement. The certificates and endorsements for each insurance policy shall be signed by a person authorized by that insurer to bind coverage on its behalf. At least Burns & McDonnell Engineering Company, Inc. Page C-2 7.28 fifteen (15) days prior to the expiration of any such policy, evidence of insurance showing that such insurance coverage has been renewed or extended shall be filed with the City. If such coverage is cancelled or reduced, Consultant shall, within ten (10) days after receipt of written notice of such cancellation or reduction of coverage, file with the City evidence of insurance showing that the required insurance has been reinstated or has been provided through another insurance company or companies. City reserves the right to require complete, certified copies of all required insurance policies, at any time. B. City's Right to Revise Requirements. City reserves the right at any time during the term of the Agreement to change the amounts and types of insurance required by giving Consultant sixty (60) calendar days' advance written notice of such change. If such change results in substantial additional cost to Consultant, City and Consultant may renegotiate Consultant's compensation. C. Enforcement of Agreement Provisions. Consultant acknowledges and agrees that any actual or alleged failure on the part of City to inform Consultant of non-compliance with any requirement imposes no additional obligations on City nor does it waive any rights hereunder. D. Requirements Not Limiting. Requirements of specific coverage features or limits contained in this Section are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type. If the Consultant maintains higher limits than the minimums shown above, the City requires and shall be entitled to coverage for higher limits maintained by the Consultant. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City. E. Self-insured Retentions. Any self-insured retentions must be declared to and approved by City. City reserves the right to require that self-insured retentions be eliminated, lowered, or replaced by a deductible. Self- insurance will not be considered to comply with these requirements unless approved by City. F. City Remedies for Non -Compliance. If Consultant or any subconsultant fails to provide and maintain insurance as required herein, then City shall have the right but not the obligation, to purchase such insurance, to terminate this Agreement, or to suspend Consultant's right to proceed until proper evidence of insurance is provided. Any amounts paid by City shall, at City's sole option, be deducted from amounts payable to Consultant or reimbursed by Consultant upon demand. Burns & McDonnell Engineering Company, Inc. Page C-3 7-29 G. Timely Notice of Claims. Consultant shall give City prompt and timely notice of claims made or suits instituted that arise out of or result from Consultant's performance under this Agreement, and that involve or may involve coverage under any of the required liability policies. City assumes no obligation or liability by such notice, but has the right (but not the duty) to monitor the handling of any such claim or claims if they are likely to involve City. H. Consultant's Insurance. Consultant shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the Work. Burns & McDonnell Engineering Company, Inc. Page C-4 7-30 cHtiFoaN`P Department: Public Works Requestor: Angela Crespi City of Newport Beach BUDGET AMENDMENT ❑ CITY MANAGER'S APPROVAL ONLY 121 COUNCIL APPROVAL REQUIRED ONE TIME: O Yes ❑ No Approvals BA#: 20-041 ATTACHMENT C Prepared by: Walid Hardi Finance Director: Date City Clerk: Date EXPLANATION FOR REQUEST: To increase expenditure appropriations from the Tide & Submerged Lands unappropriated fund balance for the ❑ from existing budget appropriations Newport Bay Water Wheel project. ❑ from additional estimated revenues El from unappropriated fund balance Fund # Object Description 100 300000 Tide & Submerged Lands Fund - Fund Balance Control Increase or (Decrease) $ (5224;925 OO) Subtotal ($224.925 00) Fund Balance Change Required 7-31 ATTACHMENT D Senate Bill No. 573 CHAPTER 317 An act to amend Sections 1 and 2 of Chapter 74 of, and to add Section 2.5 to, the Statutes of 1978, relating to tide and submerged lands in the City of Newport Beach. [Approved by Governor August 18, 1997. Filed with Secretary of State August 18, 1997.1 LEGISLATIVE COUNSEL'S DIGEST SB 573, Johnson. City of Newport Beach: tide and submerged lands. Existing law grants in trust to the City of Newport Beach all tide and submerged lands, whether filled or unfilled, bordering upon and under the Pacific Ocean or Newport Bay, as described, subject to specified conditions. The legislative grant requires the city to establish a separate tidelands trust fund or separate tidelands trust funds as may be approved by the State Lands Commission and requires the city to deposit in the fund or funds all money received directly from, or indirectly attributable to, the granted tide and submerged lands, including a city tideland capital fund, into which revenues from Parcels A, B, and C, as described, are required to be deposited, to be available only for the acquisition of real property that will further the purposes of the trust. Existing law creates the Land Bank Fund in the State Treasury, which is appropriated to the commission for the management and improvement of public trust lands. The legislative grant requires a specified percentage of lease revenue from Parcel D, as described, to be deposited in that fund. This bill would revise the legislative grant to require the city to establish a Tideland Capital Fund, a Tideland Operation and Maintenance Fund, and an Upper Newport Bay Restoration Fund. The bill would require that 80% of the revenues from Parcels A, B, and C be deposited in the Tideland Capital Fund and in the Tideland Operation and Maintenance Fund, allocated as determined by the city, and would require 10% of those revenues to be deposited in the Upper Newport Bay Restoration Fund and 10% in the Land Bank Fund. The bill would prescribe the uses for which the money in the funds could be expended. The bill would authorize the city to transfer, subject to commission approval, city -owned real property not subject to the public trust to the trust created pursuant to the legislative grant, and to compensate its general fund for any such transfer, as specified. 95 7-32 Ch. 317 —2— The 2— The bill would require the city, by December 31, 1998, to dedicate as public trust lands to be held subject to the public trust and the provisions of the legislative grant, any lands that the commission has determined have equal or greater value and utility to the public trust than Parcels A, B, and C and that would provide a satisfactory substitution. The bill would make related changes in the legislative grant. The people of the State of California do enact as follows: SECTION 1. Section 1 of Chapter 74 of the Statutes of 1978 is amended to read: Section 1. There is hereby granted to the City of Newport Beach and its successors all of the right, title, and interest of the State of California held by the state by virtue of its sovereignty in and to all that portion of the tidelands and submerged lands, whether filled or unfilled, bordering upon and under the Pacific Ocean or Newport Bay in the County of Orange, which were within the corporate limits of the City of Newport Beach, a municipal corporation, on July 25, 1919; the same to be forever held by the city and its successors in trust for the uses and purposes and upon the following express conditions: (a) The lands shall be used by the city and its successors for purposes in which there is a general statewide interest, as follows: (1) For the establishment, improvement, and conduct of a public harbor; and for the construction, maintenance, and operation thereon of wharves, docks, piers, slips, quays, ways, and streets, and other utilities, structures, and appliances necessary or convenient for the promotion or accommodation of commerce and navigation. (2) For the establishment, improvement, and conduct of public bathing beaches, public marinas, public aquatic playgrounds, and similar recreational facilities open to the general public; and for the construction, reconstruction, repair, maintenance, and operation of all works, buildings, facilities, utilities, structures, and appliances incidental, necessary, or convenient for the promotion and accommodation of any such uses. (3) For the preservation, maintenance, and enhancement of the lands in their natural state and the reestablishment of the natural state of the lands so that they may serve as ecological units for scientific study, as open space, and as environments which provide food and habitat for birds and marine life, and which favorably affect the scenery and climate of the area. (b) Except as otherwise provided in this section, the city or its successors shall not, at any time, grant, convey, give, or alienate the lands, or any part thereof, to any individual, firm, public or private entity, or corporation for any purposes whatever; except that the city or its successors may grant franchises thereon for a period not exceeding 50 years for wharves and other public uses and purposes 95 7-33 -3— Ch. 317 and may lease the lands, or any part thereof, for terms not exceeding 50 years for purposes consistent with the trust upon which the lands are held by the state and with the uses specified in this section. (c) The lands shall be improved without expense to the state; provided, however, that nothing contained in this act shall preclude expenditures for the development of the lands for the purposes authorized by this act, by the state, or any board, agency, or commission thereof, or expenditures by the city of any funds received for such purpose from the state or any board, agency, or commission thereof. (d) In the management, conduct, operation, and control of the lands or any improvements, betterments, or structures thereon, the city or its successors shall make no discrimination in rates, tolls, or charges for any use or service in connection therewith. (e) The state shall have the right to use without charge any transportation, landing, or storage improvements, betterments, or structures constructed upon the lands for any vessel or other watercraft or railroad owned or operated by the state. (f) There is hereby reserved to the people of the state the right to fish in the waters on the lands with the right of convenient access to the waters over the lands for such purpose, which rights shall be subject, however, to such rules and regulations as are necessary for the accomplishment of the purposes specified in subdivision (a). (g) Notwithstanding any provision of this section to the contrary, the city may lease the lots located within Parcels A, B, and C described in Section 6 of this act for the purposes set forth in this act and for terms not to exceed 50 years. The consideration to be received by the city for such leases shall be the fair market rental value of such lots as finished subdivided lots with streets constructed and all utilities installed. The form of such leases and the range of consideration to be received by the city shall be approved by the State Lands Commission prior to the issuance of any such lease. All money received by the city from existing and future leases of those lots shall be deposited in the city tideland trust funds as provided in Section 2. (h) With the approval of the State Lands Commission, the city may transfer portions of the lands granted by this act, or held pursuant to this act, to the state acting by and through the State Lands Commission, for lease to the Department of Fish and Game for an ecological reserve or wildlife refuge, or both, and other compatible uses to be undertaken by the department; provided, however, that, if at any time the Department of Fish and Game no longer uses those portions of the lands so transferred by the city to the state for those purposes, the lands so transferred shall revert to the city to be held pursuant to the provisions of this act. Upon approving such a transfer from the city to the state, the State Lands Commission shall lease the lands so transferred to the Department of Fish and Game. The public 95 7-34 Ch. 317 —4— benefits 4— benefits shall be the sole consideration to be received by the State Lands Commission from the Department of Fish and Game for that lease. Any and all income received by the Department of Fish and Game from the lands so leased shall be used only in connection with the department's improvement and administration of the leased lands. (i) The city shall establish a separate tidelands trust fund or funds in such a manner as may be approved by the State Lands Commission, and the city shall deposit in the fund or funds all money received directly from, or indirectly attributable to, the granted tidelands in the city. 0) In accordance with this act, the city, acting either alone or jointly with another local or state agency, may use revenues accruing from or out of the use of the granted tidelands or from any additional trust assets, for any or all of the purposes set forth in this act on public trust lands within the City of Newport Beach. Those revenues may be deposited in one or more reserve funds for use in accordance with the terms and conditions set forth in this act. (k) As to the accumulation and expenditure of revenues for any single capital improvement on the public trust lands within the city involving an amount in excess of two hundred fifty thousand dollars ($250,000) in the aggregate, the city shall file with the State Lands Commission a detailed description of such capital improvement not less than 30 days prior to the time of any disbursement therefor or in connection therewith. The executive officer of the commission shall notify the city within 30 days from the date of the filing, if the proposed expenditure raises significant issues. Upon receipt of the notification, the city shall not make any disbursement in connection with the proposed expenditure for 60 days or until the commission has acted on the proposed expenditure, whichever is the shorter period. Within 60 days of the notification by the executive officer, the State Lands Commission may determine and notify the city that the capital improvement is not in the statewide interest and benefit or is not authorized by the provisions of subdivision 0). The State Lands Commission may request the opinion of the Attorney General on the matter; and, if it does so, a copy of the opinion shall be delivered to the city with the notice of its determination. If the State Lands Commission notifies the city that the capital improvement is not authorized, the city shall not disburse any revenue for or in connection with the capital improvement unless and until it is determined to be authorized by a final order or judgment of a court of competent jurisdiction. The city is authorized to bring suit against the state for the purpose of securing such an order or adjudication, which suit shall have priority over all other civil matters. Service of process shall be made upon the Executive Officer of the State Lands Commission and the Attorney General, and the Attorney General 95 7-35 -5— Ch. 317 shall defend the state in such suit. If judgment be given against the state in the suit, no costs shall be recovered against it. (0 On June 30, 1978, and on June 30 of every third fiscal year thereafter, that portion of the city tideland trust revenues in excess of two hundred fifty thousand dollars ($250,000) remaining after deducting current and accrued operating costs and expenditures directly related to the operation or maintenance of tideland trust activities shall be deemed excess revenues. However, any funds deposited in a reserve fund for future capital expenditures or any funds used to retire bond issues for the improvement or operation of the granted lands shall not be deemed excess revenue. Capital improvements of the granted lands for purposes authorized by this act, including improvements on lands transferred to the state pursuant to subdivision (h) and paid for by the city, may be considered as expenditures for the purpose of determining excess revenues; provided, however, that if made after the effective date of this act they may be so considered only if made in accordance with subdivision (k). The excess revenue, as determined pursuant to this subdivision, shall be allocated as follows: 85 percent shall be transmitted to the Treasurer for deposit in the General Fund in the State Treasury, and 15 percent shall be retained by the city for deposit in the trust fund for use in any purpose authorized by subdivision 0) of this section. (m) At the request of the city, the State Lands Commission shall grant an extension of time, not to exceed 90 calendar days, for filing any report or statement required by this act, that was not filed due to mistake or inadvertence. (n) If the city fails or refuse to file with the State Lands Commission any report, statement, or document required by any provision of this act, or any extension period granted pursuant to this act, or fails or refuses to carry out the terms of this act, the Attorney General shall, upon the request of the State Lands Commission, bring such judicial proceedings for correction and enforcement as are appropriate and shall act to protect any improvements to, or assets situated upon, the granted lands or diverted therefrom. The State Lands Commission shall notify the Chief Clerk of the Assembly and the Secretary of the Senate within 30 days from the date of the occurrence of the failure or refusal and of actions taken as a result thereof. (o) The State Lands Commission shall, from time to time, recommend to the Legislature such amendments as it may determine to be necessary in the terms and conditions of this act. (p) The State Lands Commission shall, from time to time, institute a formal inquiry to determine that the terms and conditions of this act, and amendments thereto, have been complied with in good faith. (q) On or before December 31 of each year, the State Lands Commission shall report to the Chief Clerk of the Assembly and to 95 7-36 Ch. 317 —6— the Secretary of the Senate the full details of any transaction or condition reported to the commission pursuant to this act which it determines to be in probable conflict with this act or with any other provision of law. Upon request by resolution of either house of the Legislature, or upon formal request of the State Lands Commission made only after a noticed public hearing at which the city has been given an opportunity to express fully any disagreement with the commission's findings or to describe any extenuating circumstances causing the violation, the Attorney General shall bring an action in the Superior Court in the County of Orange to declare that the grant under which the city holds the tidelands and submerged lands is revoked for gross and willful violation of this act or any other provision of law or to compel compliance with the requirements of this act and any other provision of law. (r) The city shall cause to be made and filed annually with the State Lands Commission a detailed statement of receipts and expenditures by it of all rents, revenues, issues, and profits in any manner arising after the effective date of this act from the granted lands or any improvements, betterments, or structures thereon. (s) The Department of Fish and Game shall establish the funds and make the deposits required by subdivision (i) of this section and shall prepare and file statements required by subdivision (r) as to any lands transferred to the state pursuant to subdivision (h). (t) The provisions of Chapter 2 (commencing with Section 6701) of Part 2 of Division 6 of the Public Resources Code shall be applicable to this section. The provisions of Section 6359 of the Public Resources Code shall not be applicable to this section. (u) Notwithstanding any other provision of this act, the city shall pay to the state all revenues received from the production of oil, gas, and other minerals derived from or attributable to the real property described in Section 6 of this act and the real property acquired by the city pursuant to subdivision (a) of Section 2 of this act. Whenever practicable, the city shall obtain the mineral rights in real property acquired pursuant to subdivision (a) of Section 2 of this act. SEC. 2. Section 2 of Chapter 74 of the Statutes of 1978 is amended to read: Sec. 2. (a) The City of Newport Beach shall establish a Tideland Capital Fund as one of the funds required by subdivision (i) of Section 1 of this act. The money in the Tideland Capital Fund shall be used by the city in conformity with the following terms and conditions: (1) Expenditures from the fund may be made for the acquisition of real property that will further the purposes of the trust created by this act or for capital improvements for those purposes. (2) The city may make acquisitions of real property by purchase, gift, or other conveyance, including, but not limited to, the transfer of city -owned property held in a municipal capacity to the trust 95 7-37 -7— Ch. 317 created by this act. All such real property shall be held by the city in trust pursuant to this act. (3) For purposes of this subdivision, acquisition or improvement of real property by the city for purposes of enhancing the public trust lands administered by the Department of Fish and Game pursuant to Chapter 415 of the Statutes of 1975 shall be deemed to be authorized by, and to be in furtherance of, the trust created by this act. (4) The city may expend municipal funds to acquire real property for purposes specified in this subdivision. The city may transfer amounts from the Tideland Capital Fund to reimburse municipal funds for any such expenditures, together with an appropriate amount of interest on the municipal funds advanced, if the State Lands Commission gives advance approval of the transaction. (b) The city shall establish a Tideland Operation and Maintenance Fund as one of the funds required by subdivision (i) of Section 1 of this act. The money in the Tideland Operation and Maintenance Fund shall be used by the city for the operation and maintenance of the tide and submerged lands granted by this act and any additional lands and assets that are made subject to the public trust pursuant to this act in furtherance of the purposes of the trust created by this act. (c) The city shall establish an Upper Newport Bay Restoration Fund as one of the funds required by subdivision (i) of Section 1 of this act. The money in the Upper Newport Bay Restoration Fund shall be used by the city for Upper Newport Bay environmental restoration and improvement on tide and submerged lands described in paragraph (3) of subdivision (a) or otherwise made subject to the public trust pursuant to this act and located in Upper Newport Bay, to do both of the following: (1) Construct improvements to, or otherwise physically alter, those public trust lands if the construction or alteration directly benefits those lands. (2) Fund environmental documents, planning studies, or scientific analyses, or experiments directly related to the improvement or enhancement of the habitat values of those lands and the water quality of the overlying waters. (d) (1) Eighty percent of the money received by the city pursuant to subdivision (g) of Section 1 of this act shall be deposited in the Tideland Capital Fund described in subdivision (a) and in the Tideland Operation and Maintenance Fund described in subdivision (b), the allocation between those funds to be determined by the city. (2) Ten percent of the money received by the city pursuant to subdivision (g) of Section 1 of this act shall be deposited in the Upper Newport Bay Restoration Fund described in subdivision (c). (3) Ten percent of the money received by the city pursuant to subdivision (g) of Section 1 of this act shall be deposited in the Land 95 7-38 Ch. 317 —8— Bank 8— Bank Fund created in the State Treasury pursuant to Section 8610 of the Public Resources Code, available for expenditure by the State Lands Commission as described in subparagraph (B) of paragraph (1) of subdivision (f) of Section 4.5 of this act. (4) The city may deposit in the city funds established pursuant to subdivisions (a), (b), and (c) any other income from the tide and submerged lands granted to the city pursuant to this act or from lands otherwise held in the public trust pursuant to this act that the city determines to be appropriate and consistent with this act and the public trust. SEC. 3. Section 2.5 is added to Chapter 74 of the Statutes of 1978, to read: Sec. 2.5. (a) The city may transfer to the trust created by this act, any city -owned real property not subject to the public trust for the purposes specified in Section 1 of this act. The city may compensate the city general fund for the fair market value of the transferred real property if the transfer and that expenditure of trust funds occur after January 1, 1998, and the State Lands Commission has given advance approval of the transaction. (b) On or before December 31, 1998, the city shall dedicate as public trust lands, to be held subject to the public trust and the provisions of this act, any lands that the State Lands Commission has determined (1) have equal or greater value and utility to the public trust than the lands described as Parcels A, B, and C in Section 6 of this act and (2) that the dedication of lands as trust lands will provide satisfactory substitution for the requirements prescribed in subdivision (a) of Section 2 of this act as enacted by Chapter 74 of the Statutes of 1978. Upon a demonstration of necessity, the Executive Officer of the State Lands Commission may extend that deadline to not later than December 31, 1999. n 95 7-39